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TMI Blog2021 (7) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. Pursuant to section 154 application preferred by the assessee before the ld. AO (CPC), the regular accumulation u/s.11(1)(a) of the Act was duly allowed but the accumulation u/s. 11(2) was denied for want of Form No.10 in electronic mode. We find that both the lower authorities have grossly erred in not appreciating the facts of the case and by denying the benefit of accumulation on a mere technical inability on the part of the assessee.We find the very same issue had been the subject matter of adjudication by this Tribunal in the case of Parle Hindu Devalaya Mandir [ 2020 (3) TMI 1353 - ITAT MUMBAI] wherein this issue has been decided in favour of the assessee - We deem it fit to restore this issue to the file of the ld. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act. The assessee had claimed deduction u/s.11 of the Act while filing return of income. The return of income was duly processed u/s.143(1) of the Act on 28/02/2016 by ld. AO (CPC) wherein the benefit of accumulation claimed by the assessee u/s.11(2) of the Act was denied and accordingly, the total income was determined at ₹ 35,90,518/-. The assessee filed a rectification application u/s.154 of the Act which was rejected by the ld. AO (CPC) on the ground that the assessee had not filed Form No.10 electronically on or before the due date of filing of return. We find that assessee had indeed filed Form No.10 on 26/06/2014 before the ld. AO in physical form by hand delivery for which receipt was issued by the ld. AO. The assessee p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t assessee did not file Form No.10 electronically. This fact was not appreciated even by the ld. CIT(A) while upholding the action of the CPC. Aggrieved, assessee is in appeal before us. 3.1. It is not in dispute that Form No.10, being the statutory form for accumulation of income in terms of Section 11(2) of the Act has been filed physically by the assessee before the ld. AO on 26/06/2014, which has been duly acknowledged by the ld. AO. We find that the statute mandated online filing of Form No.10 only w.e.f. 01/04/2016 i.e. relevant to A.Y.2016-17. Hence, we find considerable force in the argument advanced by the ld. AR that for the year under consideration, the assessee could not have electronically filed Form No.10 in terms of Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Parle Hindu Devalaya Mandir vs. DCIT (CPC) Bangalore, in ITA No. 766/Mum/2019 dated 04/03/2020 for A.Y.2015-16 wherein this issue has been decided in favour of the assessee. For the sake of convenience, the entire Tribunal order is reproduced hereunder:- The captioned appeal has been filed by the assessee challenging the order dated 18th December 2018, passed by the learned Commissioner of Income Tax (Appeals)-1, Mumbai, pertaining to the assessment year 2015-16. 2. The dispute in the present appeal is confined to denial of assessee's claim of exemption under section 11(2) of the Income Tax Act, 1961 (for short the Act ). 3. Brief facts are, the assessee is a charitable trust and has been granted registrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , electronically was made mandatory by virtue of amendment made to rule 17, vide CBDT notification dated 14th January 2016, and was made effective from 1st April 2016. Therefore, prior to the amendment made to rule 17, there was no requirement for filing of Form no.10 electronically. The learned Commissioner (Appeals), however, did not accept the contention of the assessee and dismissed the appeal. 5. Reiterating the stand taken before learned Commissioner (Appeals), the learned Authorised Representative submitted, mandatory filing of Form no.10 electronically become operative from 1st April 2016. She submitted, prior to the amendment made to rule 17, by CBDT Notification dated 14th January 2016, there was no requirement of filing Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son that Form no.10, was not filed electronically. In view of the aforesaid, we restore the issue to the Assessing Officer with a direction to verify Form no.10, filed by the assessee manually, as stated by the learned Counsel for the assessee and allow assessee's claim of exemption under section 11(2) of the Act. Grounds are allowed for statistical purpose. 8. In the result, appeal is allowed for statistical purposes. 3.2. In view of our aforesaid observations and respectfully following the aforesaid judicial precedent, we deem it fit to restore this issue to the file of the ld. AO with a direction to verify Form No.10 filed by the assessee manually and allow assessee s claim of exemption u/s.11(2) of the Act in accordanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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